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TTM Technologies, Inc. Reports Fourth Quarter and Fiscal Year 2011 Results
for immediate release
SANTA ANA, CA - February 7, 2012 - TTM Technologies, Inc. (Nasdaq: TTMI), a major global printed circuit board (PCB) manufacturer, today reported results for the fourth quarter and fiscal year 2011, which ended December 31, 2011.Fourth Quarter 2011 Highlights
Operating income for the fourth quarter decreased to $17.6 million compared to operating income of $36.3 million in the third quarter.
Included in operating results for the fourth quarter of 2011 was a non-cash goodwill impairment charge of $15.2 million at the company's backplane assembly plant in Shanghai, China.
GAAP net income attributable to stockholders for the fourth quarter was $8.4 million, or $0.10 per diluted share, compared to net income attributable to stockholders of $24.5 million, or $0.30 per diluted share, for the third quarter.
On a non-GAAP basis, net income attributable to stockholders for the fourth quarter was $27.7 million, or $0.34 per diluted share. This compares to non-GAAP net income attributable to stockholders of $31.0 million, or $0.38 per diluted share, in the third quarter.
Adjusted EBITDA, which adds back asset impairments, for the fourth quarter was $60.2 million, or 16.6 percent of net sales, compared to adjusted EBITDA of $59.3 million, or 16.5 percent of net sales, for the third quarter.
"Our fourth quarter financial results were in line with our outlook with revenue towards the high end of our guidance range. Performance in each of our end markets was generally consistent with expectations," said Kent Alder, President and CEO of TTM. "We experienced continued solid demand for advanced HDI PCBs, which are used in the production of high-growth products such as touchpad tablets, smartphones and, more recently, e-readers. Advanced HDI products continued to represent a growing part of our overall product mix, and we expect this trend to continue. The shift in product mix helped offset the softer demand environment the industry experienced for conventional multilayer PCBs during the second half of the year."
"We remain confident that we are targeting the right, diverse group of customers and end markets. We are also increasing our product diversification with key customers. Our global footprint is expanding our customer engagements and helping us grow market share," continued Alder.
Net sales for fiscal year 2011 increased to $1.4 billion from $1.2 billion in fiscal year 2010.
Operating income for fiscal year 2011 decreased to $91.1 million from $125.6 million in fiscal year 2010. Included in operating results for 2011 were non-cash goodwill and asset impairment charges of $63.3 million. Excluding these charges, operating income for fiscal year 2011 was $154.4 million.
GAAP net income attributable to stockholders for fiscal year 2011 was $39.1 million, or $0.48 per diluted share, compared to $71.5 million, or $1.01 per diluted share, for fiscal year 2010.
On a non-GAAP basis, net income attributable to stockholders for fiscal year 2011 was $124.8 million, or $1.52 per diluted share. This compares to fiscal year 2010 non-GAAP net income attributable to stockholders of $105.5 million, or $1.49 per diluted share.
Adjusted EBITDA for fiscal year 2011 was $250.2 million, or 17.5 percent of net sales, compared to $194.2 million, or 16.5 percent of net sales, for fiscal year 2010.
Please refer to the tables below for a reconciliation of GAAP and non-GAAP net income attributable to stockholders as well as adjusted EBITDA.
"We were pleased to achieve record revenue in 2011 despite an increasingly challenging macroeconomic environment. We remain confident that the underlying long-term drivers for advanced technology PCBs - including the proliferation of converged mobile and media devices and the surge of networking applications - will continue to propel the industry forward. We are well positioned to capitalize on these growth opportunities. Based on customer input, prospects for the second half of 2012 remain strong," concluded Alder.
Temporary Plant Closure
The Company expects to spend approximately $6 million for the maintenance and repair work and expects the project to be completed by the end of the second quarter of 2012. TTM anticipates a reduction of revenue of about $3 million to $6 million for each of the first two quarters of 2012 due to the transition of production to other facilities. Costs associated with this project are expected to have a slight impact on margins in the first half of 2012. The Company anticipates production at the SYE facility to resume during the third quarter of 2012.
To Access the Live Webcast/Conference Call
Telephone access is available by dialing domestic 1-888-549-7880 or international 1-480-629-9644. The conference also will be webcast on TTM Technologies' website at http://www.ttmtech.com/.
To Access a Replay of the Webcast
About Our Non-GAAP Financial Measures
A material limitation associated with the use of the above non-GAAP financial measures is that they have no standardized measurement prescribed by GAAP and may not be comparable to similar non-GAAP financial measures used by other companies. The Company compensates for these limitations by providing full disclosure of each non-GAAP financial measure and reconciliation to the most directly comparable GAAP financial measure. However, the non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
Safe Harbor Statement
(ticker: TTMI, exchange: NASDAQ)
Chief Financial Officer